Trading in the financial markets entail execution costs. From the moment an investor buys a DARWIN, it will be automatically replicating the trades executed by the DARWIN provider. Therefore, and although the execution costs in Darwinex are highly competitive, investors will be subject to the same costs as the traders.
In addition to the execution costs, investors pay 20% performance fee to the DARWIN provider on a quarterly basis using the high-water mark, I.e. the highest peak in value that your account has reached.
DARWIN Investors bear two types of investment costs:
It amounts to 20% of the net profit generated investors using the high-water mark. This ensures our investors that the DARWIN provider does not get paid for poor performance. If investors lose money over a period, they must get their equity above the high-water mark. Only then, they will have to pay 20% of their profits.
Therefore, investors keep 80% of the profis and the DARWIN provider the remaining 20%.
Each time the trader opens or closes a trade in the underlying trading strategy, it incurs in execution costs which are:
- The spread or the difference between the BID and the ASK price
- The commission which is the compensation that Darwinex obtains to provide you access to the market.
- Swaps due to the interest rate differentials between currencies.
For your information, execution costs are already discounted in the DARWIN Terminal.
If you still want to know all the costs in which you incur as an investor, you can check them in the main menu, section "Execution conditions", or by clicking on this link.
Where can I see them?
You can see all the details about the performance fees paid as an investor in the “performance fees” tab, inside the DARWIN Terminal.